Last time, you learned the themes product value creation takes, and you’ll have taken a small test to see if your product teams have considered them.
Following this, readers asked for the typical ways portcos are currently trying to tackle these themes in 2022.
They are, of course, doing something, but the effectiveness of these programmes is limited.
Otherwise, tech programmes wouldn’t be spinning out together, costing more than planned and delivering less value, right?
The stages to bringing your portcos tech products to life.
The Product Strategy> The Product Roadmap> Product Delivery
The strategy is your team’s definition of your product’s 5-10 year vision and evolution to keep ahead of market trends using internal and external data.
The roadmap takes the strategic product vision, breaks down the required actions and forms this into steps to be delivered over the next 1-3 years.
Product delivery is taking the plan and getting the job done, delivering change pragmatically, along with the firm’s current needs.
What typically happens.
At the product stage, some fantastic ideas are created, a confident vision, but can often have gaps based on the protcos knowledge of their market.
As a result, the product roadmap can be under ambitious or over expensive. It may not consider PE exit timelines which may be shorter than the product lifecycle. CTOs can struggle to deal with these demands.
The knock-on effect is that 9/10 product delivery timelines will overrun as releases get delayed and competing programmes are created to deliver value to the failed main programme.
We are some of the best PE firms doing to solve this
For Private Equity, the clock is always ticking, and seeing significant value delivered within your investment horizon is critical.
In addition to the QVCMs, we mentioned previously. The best firms build consistent product frameworks that identify and predict which portfolio company needs intervention, when, and how much. The TVC Portco Heatmap
Throughout the quarter, we’ll build, assess and make recommendations for intervention from the TVC Portco Heatmap.
This is where you can influence the technology roadmap and align this to value creation
Most firms are seeing a $0.5 – $1M tech value creation windfall per portco per product theme in 90 days or less.
Does that sound like it’s worth taking action on?
Keep leading; it matters.